Is higher inflation just around the corner?

Why interest rates will likely rise faster than inflation: Is higher inflation just around the corner? That seems to be how the bond market sees it: As soon as traders heard Donald Trump had won the presidency, bond yields spiked (chart below). That’s because it’s widely assumed that inflation and interest rates will be higher under Trump than they would have been under Democrat Hillary Clinton.

There are two reasons to expect higher interest rates and rising inflationary pressure with Trump rather than Clinton as president…